Workforce Survey

8/12/2019 Workforce Survey

1/16


2/16www.airenergi.com

Introduction 1

Africa 2

Americas 3

Asia Paci c 5

Australasia 7

Caspian 8

Europe 9Middle East 10

Regional Comparisons 11

Contacts 13

Copyright @ Air Energi Group LimitedDisclaimer: The Air Energi, Oilcareers.com H1 Workforce Survey 2011 is representative of an added value serviceto clients and candidates. Whilst every care is taken in the collection and compilation of data, the survey report is

interpretive and indicative not conclusive. Therefore information should be used as a guideline only.

Contents


3/16


4/16

creating an increased demand for quali ed personnel, whetherlocal or expat. Subsea talent remains in high demand and likely toincrease once Angola gets its own pre-salt exploration programsunderway. New labour reform measures have been implemented

recently, geared toward improving working conditions andimproving government transparency in the oil and gas sector, thebackbone of the Angolan economy.

NigeriaThe Nigerian government has recently approved a $3.5 billionnational electricity grid to put an end to the countrys chronicpower shortages. Ironically, Nigeria seeks to raise much of thecapital required through foreign partners, in exchange for whichthe government promises increased operational transparency andabove-board administration. Proposed timelines are to have thenew supergrid completed by 2014; specialised subsets from localoil and gas exploits may migrate to this groundbreaking project.

Yet another federal election is threatening to backburner theproposed Petroleum Industry Bill (which would effectively rewritethe legal and scal basis of Nigerias relationships with IOCs) oncemore, potentially delaying billions of dollars in energy industryinvestments. Until fully revealed and understood, the controversysurrounding the Bill will result in a slowdown in some major projects,operators opting to remain in holding pattern until it is known whatreal effect the bill will have on corruption and security concerns.

Whereas localisation policies arerelaxing in other parts of the world,they are becoming increasinglystringent here, adding to the

complexities and challenges ofdoing business in Africa.

Regional OverviewRegional energy superpowers Nigeria and Angola have recentlybeen joined by Ghana with its much-anticipated Jubilee eldhaving come online in late 2010. Anxious to avoid the internalcorruption, violence and diplomatic tensions experienced by itssub-Saharan neighbours, Ghana is taking its time with draftingits own oil revenue policies. Meanwhile, security risks escalatein Nigeria in the face of yet another presidential election andchronic administrative opacity continues in Angola where state

run Sonangol appears to be ever more controlling of the countryspetroleum resources, commerce and wealth. Whereas localisationpolicies are relaxing in other parts of the world, they are becomingincreasingly stringent here, adding to the complexities andchallenges of doing business in Africa.

AngolaBlessed with some of the worlds largest energy and mineralreserves yet cursed with blistering in ation, poverty and a highlycorrupt government, new US-based legislation and pressure frominternational watchdogs for full disclosure of resource basedrevenues may soon force increased transparency on behalf ofthe Angolan government and NOC Sonangol. These measureshave been proposed to not only improve domestic distributionof revenues but also to provide better risk assessment data forfuture investment and operations.

FEED, subsea and safety work remains in high demand into 2011,with job vacancies being lled by both local and expat personnel.Operators are hopeful that new labour reform measures will make

Angola a more attractive destination as it competes for highlytechnical talent with similar exploits in Brazil, Asia Paci c and theNorth Sea.

NigeriaDespite chronically limited numbers of local skilled personnel, thepressure for nationalisation has only increased of late with therecent implementation of Nigerias Local Content Policy, which willsee expats released and replaced by quali ed nationals.

This will prove to be a double dose of cost increases for localoperators, now faced with Niger locals demands for higher ratesonce paid to their expat peers as well as potential slow-downs inoperations due to a sudden void in expertise.

The much anticipated Petroleum Industry Bill (PIB) will take effect

in early 2011, yet with some 120 amendments brought forwardover the course of its inception uncertainties as to scal terms androyalty arrangements still remain for IOCs operating in Nigeria.

Additionally, the PIB will also usher in the Nigerian NationalPetroleum Corporation (NNPC), the question remains how thegovernment will legislate who is allowed to do what and to whatextent.

Presidential elections are once again around the corner in Nigeria,and with incumbent President Goodluck Jonathan being the rstleader from the militant-ravaged Niger Delta, fears of increasedmilitant activity are mounting if the nomination or ticketing processis perceived as unfair.

Your Expectations as a Region

Africa

Africa Salaries

Decrease No Change

60%

20%

20%

Increase

Africa Hires

Decrease No Change

20%

60%

20%

Increase

www.airenergi.com 2 Air Energi 2011


5/16





Efforts are now on managingproject activity and growth so asto prevent yet another labourmeltdown, driving rates and

project costs out of control. Regional OverviewMajor plays continue to unfold across the Americas in spite ofregulatory uncertainty, technological challenges, and politicaland economic instability. Investments in the exploration andproduction of South American reserves are coming in by thebillions, yet common concerns behind labour standards andavailability and ageing (or simply non-existent) infrastructure areincreasingly coming to the fore. Where feasible, corporationshave undertaken to establish technical training centres in-country,however these will not address labour shortages in the near term.For now, the mantra remains local, local, local, but as projectsgain traction and pressure mounts to get production going andrepay massive debts, there may be a loosening of borders toaccept the outside expertise required to keep projects on track.from international watchdogs for full disclosure of resource-basedrevenues may soon force increased transparency on behalf ofthe Angolan government and NOC Sonangol. These measureshave been proposed to not only improve domestic distribution ofrevenues but also to provide better risk assessment data for futureinvestment and operations.

Argentina Argentina continues to enjoy sustained economic growth, and

the energy sector continues to develop new sources in a questfor energy self-suf ciency. A recent major shale gas nd is beingheralded as the potential future of Argentine energy security, whichcould bring a spike demand for related disciplines, however with somuch gas exploration and development work underway worldwideit is questionable whether Argentina will become a destination forskilled labour, particularly given the countrys strict immigrationcontrols and pressure from local unions.

Falklands exploration continues, though recent reports questionthe extent of resources to be found in the region. Major IOCshave yet to wade into either the debate or the development of theregion; for now it is the smaller exploration corporations taking up

this task. Rates are anticipated to hold or increase in Argentina,particularly as local unions are once again exing their muscle,using the rising local economy and recent political instability asbargaining chips.

BrazilBrazils economic makeover continues full steam into 2011. Asits economy heats up, fueled in particular by the prospect of itsmulti-billion barrel subsalt nds, the demand for suitableinfrastructure also escalates. This is being underscored by theinfrastructure requirements forecasted within the energy sector, the

lack of which will drive up production costs in country signi cantly.In response, the administration has announced a $1 trillioninfrastructure investment plan.

Government involvement in the energy sector will increase, givingmore ownership and control of projects to state-owned Petrobras,however this will be offset by tax incentives to encourage foreignprivate investment. Nonetheless, the emphasis remains onutilising local service companies and construction equipment asmuch as possible throughout, with foreign operators invited under

joint venture agreements in order to ful ll local content requirements.

Brazils shipbuilding industry is also making a blazing comeback: its

naval yard workforce has doubled in just three years in response tohundreds of orders for drill rigs, FPSOs and other production units.There is potential for a new LNG plant to be commissioned off Brazilmid-2011 and auctions of the rst pre-salt nds could happen asearly as next year. Engineering expertise across multiple disciplineswill be in very high demand in response to all this activity, howeverBrazilian immigration policy is not anticipated to sway in the favourof foreign talent for the moment.

ColombiaBrazil may be in South Americas energy spotlight at the moment,but Colombias Ecopetrol is also forecasted to invest billions inexploration and production, downstream and pipeline projectsin 2011. Though an otherwise foreign business friendly climate,shortages of skilled labour and lingering strict immigration policyare putting a damper on any real momentum within the Colombianenergy sector. With signi cant pick-ups in other South Americaneconomies and sectors, Colombia has the potential to positionitself as a prime destination for skilled expats seeking a term in theregion. Locals have simply not had the experience from explorationto commissioning to the same extent as those within western IOCs;the issue will therefore hinge very much on immigration policies,which are at once protectionist and somewhat arcane.

Americas



6/16





CanadaThe Canadian energy sector continues to move down a timeline:2010 saw responsible recovery, 2011 is widely forecasted tobe busy, but industry execs are speculating that 2012 will bringanother peak in activity for which labour will be a key factor. Effortsare now on managing project activity and growth so as to prevent

yet another labour meltdown, driving rates and project costs out ofcontrol. The challenge is in nding the balance between accedingto scal and administrative pressures (i.e., favourable oil pricingand timelines set during approval processes) without landingback in the gold rush mentality and creating a wage race for theentire sector once again.

Eastern Canada is becoming an increasing force not only onCanadas energy scene but as a research frontier for explorationand production activity for the local Atlantic region, Greenland andfarther north. Major projects in the area continue their expansionsas major operators continue to build out research teams andcentres there, keen to develop drilling programs and become local

operators on their own. Pressures on the local labour market arealso being exerted from an increasingly strong mining sector andthe multi-billion dollar Lower Churchill Dam hydroelectric project.Otherwise, there is high demand for Project Controls, ProjectServices and Construction Management disciplines as well asPipeline Engineers and conventional eld roles.

The pressure to resume offshoreoperations is mounting as the USAloses strategic ground to majorenergy exploits being built upworldwide.

USAIndustry remains skeptical in the wake of Macondo, with severaloffshore projects both within the Gulf of Mexico and elsewherepostponed into 2011. The pressure to resume offshore operationsis mounting, however as the USA loses strategic ground to majorenergy exploits being built up worldwide.

Upstream design work has increased in Houston largely insupport of projects in Eastern Canada and abroad, creating arapid constriction on EPC talent locally and nudging rates upward.With talent availability and rates once again becoming signi cantfactors in project feasibility studies, companies are in some caseschoosing to shelve projects for which staff will be either in shortsupply or too costly. Tremors of the HR panic of 2008 can still be

felt as companies are being held accountable to deliver on staf ngplans, resulting in an overall preference for staff over contractorsat the moment. Key talent put on extended leave because of therecent downturn are being brought back and once the deepwaterdrilling moratorium is lifted, expect a sharp increase in demand fromoil service companies.

VenezuelaTo nationalise or not to nationalise, that remains the question inVenezuela. Despite the nationalisation of some 200+ foreignoperations across multiple sectors in 2010 and legal battles withExxonMobil and ConocoPhillips, Venezuela continues to tightenits grip on the oil services sector with proposed new legislationthat would allow government to circumvent current legal channelscurrently required to nationalise foreign assets.

Major loans from China and Russia will help kickoff developmentof Venezuelas vast Orinoco belt, a welcome investment in lightof declining production volumes from mature elds, maintenancestoppages and overall weakened infrastructure. EPC workcontinues in support of Orinoco projects and may soon increaseas the development of Venezuelas largest gas discovery getsunderway in conjunction with Italys Eni. Despite its many obstacles,Venezuela may be one of few countries to enjoy the luxury of a

suf cient local talent pool to support its major projects into 2011.


Americas

Americas Salaries

Decrease No Change

52%

6%

42%

Increase

Americas Hires

Decrease No Change

32%

0%

68%

Increase



7/16





Some IOCs have been observedpaying top dollar to ensure therequisite team members are ondeck to meet project demands.

Regional Overview After months of nationalistic tensions and uncertainty on behalfof IOCs operating in Asia Paci c, there seems to be a return torelative ease of operations in the area. Borders have loosenedsomewhat, workarounds to formidable regulations have beenfound and con dence has returned to the future stability of theenergy sector here. Fabrication and construction in support ofLNG plays here and abroad (such as shipbuilding and constructionof modularised LNG components) is chief among industry activityand subsequent draw on personnel, in particular FEED positionsand project teams in support of modularised construction work. Allin all, 2011 looks to be extremely positive throughout the region.

JapanJapan remains a powerhouse in the global oil and gas scene,lending its engineering expertise and cash investments to projectsworldwide. However it has been evident for several years that itis critical for the oil and gas industry of Japan to make sure thatthere is some stability regarding supply of oil and gas resources.Evidence of this diversi cation is the joint venture with Russiawhich will see a $300 million investment in the development ofthree oil and gas sites in the north of Russias Irkutsk region. Thereserves of North Mogdinsk are estimated at around 14.8 milliontons; however they may in fact amount to as much as 50 milliontons. The rst oil from the deposits would enter Japan on the EastSiberia - Paci c Ocean (ESPO) oil pipeline in three to four yearstime.

IndonesiaLacking local technical expertise and nancial backing, theIndonesian government has become more accepting of foreigntalent, investment and project management to get projects owingand all important post recession revenue generated sooner.Localisation is still key but because of the scale and project controlrequirements of projects underway here IOCs have made clearthat expat expertise must be in place to ensure timely delivery.

In spite of sagging domestic production and regulatory hurdles,a new maritime law requiring Indonesian agged vessels for thetransport of goods domestically will further threaten Indonesiasability to keep pace with the regions thriving energy industry.

The law, expected to be in effect in May 2011, will affect bothexploration and transport rigs and ships, hampering activity in thearea given an insuf cient inventory of domestic vessels and lack ofexperienced personnel.

FEED work in support of several local natural gas plays is expected

to increase. Construction teams required to meet high ordervolumes of FPSOs, drill rigs, and drillships are in high demand andproving dif cult to assemble.

MalaysiaNew tax incentives aimed at generating foreign investmentare helping Malaysia gear up for a busy 2011. Recent projectannouncements include massive investments in infrastructure,plans to build two nuclear power plants, development of new LNGregasi cation facilities and a new oil and gas hub inclusive offabrication yards and storage terminals.

Localisation and state ownership (or control) of major projectscontinues, however, and with strong competition for investmentand E&P from elsewhere in the region the Malay government willlikely be forced to turn a blind eye to its notoriously stiff regulations.FEED and EPC disciplines will be in high demand, and faced withstrong global competition for top talent these skill sets will continueto be in short local supply. As elsewhere in the region, subsea andconstruction related Project Managers, Construction Managers, aswell as Quality and Safety personnel are in high demand.

ThailandPolitical instability may be on the horizon once again in Thailandon reports of the monarchs failing health. The Thai government

has made positive steps to improve the transparency of foreigninvestment regulations creating an in ux of foreign interest andinvestment in Thailand of late, though regulatory watchdogs haveyet to be of cially formed and appointed. With strong competitionfor talent, investment and resources from neighbouring Malaysia,Indonesia and Singapore, true momentum within Thailands energyand industrial sector may not be had until its political unrest andregulatory uncertainties are resolved. As elsewhere in Asia Paci c,Thailand will also be a draw for any available subsea expertiseand an ambitious expansion of its massive petrochemical re nerycomplex are expected to spike demand for EPC-related disciplinesinto 2011.

Asia Pacic



8/16





SingaporeSingapore continues the expansion of its diverse LNG operationsportfolio with the construction of a new LNG terminal andconnecting pipeline infrastructure off Jurong Island, both ofwhich are targeted to be completed in early 2013. Expansionof its chemical and re ning industry is also planned into 2011,

including a second ethylene cracker and new butyl rubber plant,taking advantage of the ample feedstock made available throughSingapores vast petrochemical storage facilities.

EPC and Project Management contracts arising from theseopportunities will also compete for talent with Singaporeanshipyards, which are grappling with high order volumes of FPSOsand other rigs. Subsea and Safety will be two areas competingfor personnel with similar projects worldwide, particularlyas Singapore seeks to position itself as a centre of subseaengineering excellence in the wake of the Macondo spill. Thoughostensibly a job seekers market, local industry is keeping ratesin check, yet some IOCs have been observed paying top dollar

to ensure the requisite team members are on deck to meetproject demands. Otherwise, expat packages are being trimmedsomewhat as corporations recognise the value of the quality oflife that Singapore has to offer combined with attractive longerterm contracts.

Construction teams required tomeet high order volumes are inhigh demand and proving dif cultto assemble.

VietnamIn response to a dramatic increase in natural gas consumption,Vietnam will embark on construction of its rst domestic LNGimport terminal and regasi cation facility: state-run Petro VietnamGas is targeting the facility to come online within an ambitious 12 to24 months. Further efforts to bolster critical energy self suf ciencyinclude a $1.2 billion thermal power plant, with constructionplanned to commence in early 2011. Whilst the doors to foreigninvestors have been opened for bidding on these contracts,Vietnams employment regulations keep its borders closed toforeign talent. As throughout 2010, existing expat contracts arenot being renewed and contracts on any new projects are beingoffered almost exclusively to Viet nationals.

Fabrication and construction insupport of LNG plays, here andabroad is chief among industryactivity and subsequent draw on

personnel.Your Expectations as a Region

Asia Pacic

Asia Pacic Salaries

Decrease No Change

57%

0%

43%

Increase

Asia Pacic Hires

Decrease No Change

0%

43%

57%

Increase



9/16





Strong union representation, anabundance of resources and anoverall healthy local economy,labourers are increasingly forcing

the hand of operators for wageincreases.

Regional OverviewThe long awaited inquiry into Australias 2009s Montara spill waspublished in late November. Among the recommendations is adesignated, uni ed body responsible for all offshore HSE controls,and while not yet rati ed by government or industry the demandfor Safety expertise will continue to rise into 2011. Infrastructureconstruction continues at a rapid pace in PNG with severalcompanies committed to upskilling the local PNG workforce andsupporting the National Content plans. High demand also remains

for Project Engineering, Quality, Procurement and Constructionpersonnel throughout the region.

AustraliaSince rattling the mining industry several months ago when it was

rst proposed, a rst draft of the mining supertax legislation isexpected to be presented to parliament in early 2011. Operatorscan still expect a headline rate of between 38 and 44 per cent,depending on revenues and the type of resources being minedfor. Climate change remains a key concern in Australia, thoughPrime Minister Gillard recently announced the postponement of acarbon trading scheme until 2012, good news for heavy industry

but angering valuable allies within the Green party.

Though its reserves are among the largest in the world, Australiasgas exploration and production projects are facing the reality ofboth a local labour crunch and an oversupply of LNG worldwide,serving to cool the pace of development somewhat. With strongunion representation, an abundance of resources and an overallhealthy local economy, labourers are increasingly forcing thehand of operators for wage increases and improvement of livingand working conditions; with multi-billion dollar projects at stake,operators are in turn swallowing project cost increases of upwardsof 40 per cent.

An increase in labour supply is being called for across all levelsand multiple industry sectors, in response to which the Australiangovernment has opened exceptions to existing immigration policyto allow the in-migration of skilled personnel in support of mega

projects only. In terms of overall global supply of LNG expertise, Australia may bene t from soon to be unemployed personnel onlocation in Qatar, as many of the Middle Eastern countrys LNGprojects will near completion across 2011.

PNGWith its mining resources and massive deposits of natural gas,oil and gas companies and the government are investing heavilyin infrastructure construction activities, including road and bridgeworks, telecommunications and camps to house the largeconstruction workforces expected.

Commitments are being made to support the National ContentPlan, with companies ramping up to train nationals, transfer skillsand to utilise local contractors and suppliers. This is supportedby the launch of the governments medium term strategic plan todevelop workforce and supplier capability in PNG. It is expectedthat substantial funds will be committed.

Though still a developing country with residual security and safetyrisks, these developments along with the frontier environmentcontinue to make PNG an attractive location for the industryspioneers.


Australasia

Australasia Salaries

Decrease No Change

67%

0%

33%

Increase

Australasia Hires

Decrease No Change

22%

0%

78%

Increase



10/16





2011 is forecast to get off to a slowstart here, as corporations often optto halt recruitment and mobilisationefforts until warmer weather returns

in the spring.Regional Overview2011 may be a more encouraging year in the Caspian regionbut the full story will not be known until the spring when hiringand project activities resume at full speed. Home to some of theworlds largest oil reserves and gas elds, regional governmentsare openly courting international investment and undertakingnecessary reform measures to position themselves as cooperativebusiness partners. The next challenge will be in attracting thetop level talent required to tap into the regions remote reserves,and given the formidable winter weather and relatively meagerstandard of living, this will be no easy task.

KazakhstanWith the mercury dipping to -40 degrees during Kazakh winters,the weather can make operations and deployment of personnelvery challenging. 2011 is forecast to get off to a slow start here, ascorporations often opt to halt recruitment and mobilisation effortsuntil warmer weather returns in the spring.

Nationalisation still dominates the market, with the governmentusing any opportunity to drive down the number of expat workpermit quotas. Faced with frequent cost overruns IOCs are ndingthemselves in a Catch 22, not wishing to be too top heavy with

expat hires yet needing the expertise to keep projects on track.Healthy oil prices will shore up optimism and positive hiring trendsinto the New Year, however Kazakhstan is also known to be avolatile market, with the ability to hire hinging on project activityabroad and government cooperation. Drilling, Safety, Weldingand Structural specialists remain in highest demand.

Azerbaijan Azerbaijan enjoys a strategically valuable position between theFSU and Europe, and European governments have alreadypledged billions toward the development of the Nabucco pipelinefrom Azerbaijan to mainland Europe with a goal of reducingenergy dependence on Russia. It is also a key transport corridor

for US military efforts in Afghanistan. Yet for all its westernfriendly arrangements, Azerbaijan continues to demonstratecorruption and authoritarian tendencies: strengthened energytrade agreements with Iran, suspicions of rigged federal elections

and mounting tensions with neighbouring Armenia will keepthe international community on its toes into 2011. Explorationand development continues apace for the moment, notably theexpansion of Azeri pipeline networks to various locations in theregion, adding new recipients and boosting export volumes. Rateswill remain competitive in efforts to retain key staff.

Russia Amid high taxation and a subsequent fear over a drop off of oilproduction, the Russian deputy nance minister has quelledconcerns by con rming Russia will introduce a new pro t based taxon new oil elds from 2012. Russias economic and energy outlookhas stabilised considerably of late, which will likely encouragethe heavy investments required to tap into its remote reserves.Russias known reserves are eighth in the world, but it is numbertwo in production. Industry analysts envisage prospective reservesto be twice the estimated known reserves, but foreign investmentcapital will be a necessity to meet future production goals. Breakingnews in January has been the announcement of the joint venture

between BP and Russian energy rm Rosneft to exploit potentiallyhuge deposits of oil and gas in Russias Arctic shelf. The strategicglobal alliance will see the rms exchange expertise in exploringthe region.


Caspian

Caspian Salaries

Decrease No Change

80%

0%

20%

Increase

Caspian Hires

Decrease No Change

0%

0%

100%

Increase



11/16





Europe is still the global go-to fortechnologically challenging designwork.

Regional OverviewThe economic chasm is widening in the Eurozone between thehaves (such as France and Germany) and the have nots (Greeceand Ireland), and concern is also spreading over tenuous debtlevels and high unemployment in Italy and Spain. Despite thenegative pressure the region has experienced of late, Europe isstill the global go to for technologically challenging design work,the depth of expertise providing valuable insurance that complexprojects will be delivered on time and on budget. The UK looksforward to a pick up in project activity worldwide, which will keepdesign rms in London and Aberdeen busy well through 2011.

And North Sea exploration and development, once the silverbackof the industry, has undergone a complete revival with billions inE&P investments pledged for the coming year.

ScandinaviaNorth Sea exploration may be decades old but it is not slowingdown, with the Norwegian government having recently committed$30 million on seismic exploration on the Norwegian shelf, citingmany areas have yet to be fully mapped. All in all, Norway expectsdomestic upstream investments to exceed 1985 levels in effortsto maximise current exploits, explore fringe areas, and fullyunderstand the regions potential. Return to operations followingwidespread maintenance outages in late 2010 is also fueling themomentum here. For the moment, the workforce demographic inthe north remains heavily local with rates slightly lower than in

mainland Europe, though the forecasted spike in activity coulddrive demand for key personnel and ensuing rates upward.

UKOperators here and abroad breathed a deep sigh of relief whenthe proposed cap on skilled migrants into the UK was amendedto allow candidates deemed exceptional talent (Tier 1) as wellas Tier 2 candidates brought in to work under intra companytransfers, providing a valuable loophole for EPC rms in Londonand Aberdeen ramping up for a heavy design year in 2011. Thoughthe issue of skills versus nationality has not as yet been fully putto bed, any immediate administrative hurdles (and costs) seem tohave been averted. As the EPC market gathers speed, rates will

increase, though these large, one off jobs will only require shortduration resources.

In what may be the rst retreat from deepwater exploration sinceMacondo, the UK surprised the industry and analysts by awardingfewer than anticipated exploration licenses in a recent bidding round,despite public gestures of interest in exploration in the region. Withthe industry thirsty for cash injection, the holding pattern is not likelyto last long. At Blackpool in the North West region of the UK, drilling

is due to take place to extract shale gas. This highly controversialoperation has attracted opposition from environmental groupswho believe that the high risk health concerns have not been fullyexplored.

Mainland EuropeFrom an immigration and mobilisation standpoint, the EU is still arelatively easy place for expats to work, though both contractorsand permanent staff are being forced to accept lower packagesto keep on par with local rates. This trend may reverse into 2011as project activity worldwide picks up, bringing technologicallycutting edge EPC work back to the esteemed design rms here.

Average unemployment lingers at a relatively steep 10 per cent,

and with the exception of Germany and France, Europes industrialsector lags behind many other economies worldwide. Safety,Process and Planners remain the most sought-after disciplines.


Europe

Europe Salaries

Decrease No Change

72%

0%

28%

Increase

Europe Hires

Decrease No Change

24%

14%

62%

Increase



12/16





Major demobilisation of manyprojects is underway with ananticipated 40 per cent of theworkforce leaving Qatar by theend of quarter two.

Regional OverviewThe focus across much of the Middle East remains on diversi cationof its energy sector (both upstream and downstream) and onsolidifying domestic energy supply, ironic given the region is hometo some of the largest deposits of oil and gas in the world. With oilprices holding at a comfortable $80-$90 and beyond, internationalinterest and investment may once again pick up in the MiddleEast into 2011. For the moment, relatively easy immigration, lowtaxation, steady rates and long-term contracts (and direct hires)will make the Middle East an attractive destination for thoseinterested in a term here.

IraqIraq is home to an estimated 110 billion barrels of proven oilreserves, the third largest in the world. Iraqs true resource potentialmay be greater than expected, as deeper oil bearing formationslocated mainly in the Western Desert region could yield additionalresources. As a turbulent peace is held together by foreign anddomestic security forces, Iraqs oil ministry has signed deals withforeign companies to develop its Mansuriyah and Siba naturalgas elds. As it tries to boost its energy production and breakinto global gas markets, Iraq awarded contracts for developmentof three elds in its third energy bidding round since the 2003

invasion. The rst commercial production from the gas eldsachieved by the contractor will be 25 per cent of the productiontarget within the rst three years, announced the Head of theministrys licensing and contracting of ce. He also stated that hehoped that the total output targets would be achieved within sixyears. The Iraqi government has said the priority for the gas willbe domestic consumption, but stressed the possibility of allowingexports. More than seven years after the U.S and British ledinvasion, Iraqs national grid only supplies a few hours of powereach day.

Qatar With its LNG super trains either onstream or soon to be, major

demobilisation of many projects are underway at the moment withan anticipated 40 per cent of the workforce leaving Qatar by theend of quarter two. EPC personnel may be retained in supportof the Barzan and Ras Laffan projects, though much of thedesign work is anticipated to be done out of design houses in the

UK. Corporations with deep enough pockets have enjoyed theluxury of keeping key staff on the payroll for several months untilproject activity picks up once again. Personnel with valuable LNGexperience from Qatar will likely nd easy transferability of skills toother LNG hubs in Southeast Asia and Australia.

UAEUAE is something of a project activity hotspot into 2011, withexpansion work ongoing throughout the ADNOC group ofcompanies. Efforts to push production and downstream processesare leading to plenty of EPC and sub construction work at themoment.

Though the UAE like much of the post recession world has strictnationalisation programs in place, the region is very keen on keepingoil and gas revenues owing, particularly with the Dubai debt crisisin the not too distant past. Workarounds to immigration policies havetherefore been found at all levels, to the extent that the vast majorityof the workforce here is comprised of internationals. Nonetheless,

with the sheer volume and scale of projects underway, the helpis needed and the UAE is certainly accomplishing its ambitiousproduction increase and energy diversi cation goals.

Disciplines highest in demand include Project Controls personnel(Cost, Planning and Scheduling Engineers) as well as variousdiscipline engineers. Construction and Commissioning personnelare expected to be in demand into quarters three and four.


Middle East

Middle East Salaries

Decrease No Change

80%

0%

20%

Increase

Middle East Hires

Decrease No Change

20%20%

60%

Increase



13/16

Regional Comparisons

Key Decrease No Change Increase

Africa - Salaries and Pay Rates Africa - Hires

Americas - Salaries and Pay Rates Americas - Hires

Asia Paci c - Salaries and Pay Rates Asia Paci c - Hires

Australasia - Salaries and Pay Rates Australasia - Hires

H1 = statistics/predictions for the rst half of the year, H2 = statistics/predictions for the second half of the year.



14/16

Regional Comparisons

Key Decrease No Change Increase

Caspian - Salaries and Pay Rates Caspian - Hires

Europe - Salaries and Pay Rates Europe - Hires

Middle East - Salaries and Pay Rates Middle East - Hires

H1 = statitics/predictions for the rst half of the year, H2 = statistics/predictions for the second half of the year.



15/16


16/16

Workforce Survey

Documents

Transcript of Workforce Survey